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Why the Software-Defined Data Center Is the Future

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Software-defined data center

The future of the data center is SDDC (software-defined data center), which is based on three pillars: SDC (software-defined computing), SDN (software-defined networking), and SDS (software-defined storage). ReportsnReports.com expects the SDDC market to grow at a compounded annual rate of 28.8% to reach $77.18 billion by 2020.

As the chart below shows, over 25% of IT professionals surveyed by IT Brand Pulse are expecting to evaluate or deploy SDS in 2015.

Challenges in existing data center environment

Data centers across the globe have ten million idle servers, which are causing an estimated capital loss of $30 billion, according to a study by Anthesis Group and Stanford University. This is because enterprises purchase far more storage than they currently need in order to ensure they have sufficient capacity to meet the unpredictable and rapid growth of data.

Emergence of SDDC

The problem with hardware-defined storage platforms is that they cannot be repurposed to suit the immediate and ever-changing storage needs. SDS fulfills immediate storage requirements of enterprises regardless of the underlying storage hardware infrastructure. The benefits of software-defined architecture have led to the emergence of SDDC.

IT Brand Pulse compared SDDC with traditional storage hardware and listed three major benefits:

  • SDDC reduces storage costs by 40%
  • SDDC speeds up deployment of virtualized resources
  • SDDC delivers the ability to scale out to millions of nodes

Adoption of SDS

According to Forrester Research, SDS will be adopted in two phases. In the first phase, the existing storage systems will be modernized to SDS standards. In the second phase, software-only storage will gain ground.

The SDDC architecture has made hyper scale growth possible for Internet giants like Google (GOOG), Facebook (FB), and Amazon (AMZN) who have 100% cloud-based businesses. These firms don’t use specialized storage platforms, but purchase hardware that meets their specific needs and then control it using software. HP’s (HPQ) ProLiant DL2000 Multi Node Server is one of the systems that meets the requirements of such cloud-based businesses.

The PowerShares QQQ Trust, Series 1 ETF (QQQ) has 4.92% exposure to Amazon, 4.25% exposure to Google, and 4.14% exposure to Facebook.

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